PetroChina begins asset divestment

PetroChina announced a series of asset sales and internal mergers, including the sale of its 50% stake in the Trans-Asia Gas Pipeline Co. to Mansong Holdings, a subsidiary of China Reform Holdings Corp., the integration of its two natural gas transmission businesses Kunlun Gas Company and Kunlun Energy Company, and a transfer of 6 natural gas storage facilities to its parent company CNPC. When completed, these moves will generate around US$3 billion in sale proceeds to PetroChina, increasing cash flow and providing a one-off boost to profits at a time of low oil prices.